Renko Chart Overview: Renko a Type of Chart, Developed by the Japanese, That Is Only Concerned with Price Movement,Time and Volume Are Not Concerned
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Renko Chart Overview: Renko A type of chart, developed by the Japanese, that is only concerned with price movement,Time and volume are not concerned. It is thought to be named for the Japanese word for bricks, "renga". A renko chart is constructed by placing a brick in the next column once the price surpasses the top or bottom of the previous brick by a predefined amount. White bricks are used when the direction of the trend is up, while black bricks are used when the trend is down. This type of chart is very effective for traders to identify key support/resistance levels. Transaction signals are generated when the direction of the trend changes and the bricks alternate colors. Renko Chart Style: Every brick (Bare) is the same size and a new brick is drawn one brick size below or above the brick before it. Bricks that are adjacent never overlap. Every brick starts where the previous brick ends. Some Traders can specify the size of bricks in pips. Through our experience we advise to keep brick with size 10 pips. Candlestick Style: is the Time-Frame chart, "time" splits one candle from other by the time-frame you've chosen, the candles are random in their sizes too. Random Open - Random high - Random low - Random close, this is very easy to make you confused & when you change the time-frame the randomness changes to further confuse you. Conclusions Like their Japanese cousins (Kagi and Three Line Break), Renko charts filter the noise by focusing exclusively on minimum price changes. Renko bricks are not added unless price changes by a specific amount. As with Point & Figure charts, it is easy to spot important highs and lows, and identify key support and resistance levels. Armed with this information, chartists can identify uptrends with higher highs and higher lows or downtrends with lower lows and lower highs. As with all charting techniques, chartists should employ other technical analysis tools to confirm or refute their findings on Renko charts. To Follow 100 Pips in candlestick, maybe you need 40 Hours of presence, following maybe +1000 candles, but in renko never care to time, just you focus on 10 bars only, be harmonic with the price. the figure above represents candlestick chart eur/usd pairs from NOTE: Take look here, you'll find that candles are random and has different sizes, it’s hard to know the right price trend direction, is that uptrend! down trend! or sideway! The figure above represents Renko chart EUR/USD NOTE: Once you focus just a few seconds, you will discover the secret of renko charting, Candles perfectly homogeneous has the same size, and identic, the price chart is forming like stairs following a 45° Angle with explicit redirection & Down a very clear view, Unlike the candlestick chart you will find many candles, it’s a maze of candles between Stars, Raindrops, Doji, hammer, paper umbrella, harami, engulfing, spinning tops …ect : - Renko charts filter out the noise of wicks and are based solely on price without time. - Renko charts clearly indicate support and resistance. - Can be used to confirm trends or can be traded on their own. - No Chart Pattern knowledge required like candlestick time chart. Well! the advantage trading with Renko trading is stay away of the time, in candlestick style traders point their interest in time and follow the chart candle by candle, Minute per minute, hour per hour, Is not this a waste of time? Ex: in April 9th2014, EUR/USD: 00:00, was: 1.3791 in May 9th2014, EUR/USD: 00:00, was 1.3842 1.3842 – 1.3791 = 51 Pips Right? From April 9th to May 9th = it’s 30 Days On H1 Time frame How many Candle Focused? 720 Candles & each candle 1H, Yes this is the Right number, but With Renko Charts you abbreviate this movement with less 51 Bricks with 8 successful Trading opportunities between buy & Sell with high profit . Ex: in June 5th 2014, EUR/USD, was : 1.3636 in June 12th2014, EUR/USD, was 1.3523 in June 25th2014, EUR/USD, was 1.3640 1.3636 – 1.3791 = 113 Pips in 7 days 1.3640 – 1.3523 = 117 Pips in 13 days Renko Chase v2.1 ( Old View ) – Cascade stars replaced in v2.2 This trading system is Non Time-frame based charting that use the strategy called the Renko Chart, we called this system Renko Chase, an indicator oriented for trading based renko chart. In Renko Charts time& Volume is not of concerned at all, trading will be carried following typical price behavior and movement in pips only to generate renko bars (bricks) each movement of 10pips on renko charting, only 10pips what separates one candle from another. Since using a renko chase chart you will get the noise removed and it shows you the chart based on the movement of the market in pips. Time-frame is one easy way of losing money in Forex because if you are using a GMT Broker the candles look different, if you are using a GMT+2 broker candles look different and if you use a GMT+4 broker it looks different. So basically it’s the best way of losing money because indicator reading looks different from broker to broker, candles look different from broker to broker. We Know! As forex trader you still hours fixed in your chair waiting for price movement, watch your chart candle by candle, maybe minute by minute or hour by hour, it’s waste of time especially if Lacks experience in modeling or chart pattern, finally you will lose your money. On the contrary, relying trading on renko style, you can focus only on price movement, you never care how chart will look like. You need to be concerned of one thing that is the PRICE because that’s what we are dealing for. Price movement is what people seek to buy or sell to get profit. Change of price is what the deciding factor is between Earning and losing. When the price of a currency is low, it gets into demand/buying & when the price of a currency is high it gets into supply/selling, if we sell or buy we hope only that price move for our favor, we not care for time or timed candles. Is There Chart Patterns in Renko? The only potential chart patterns will present in renko charts is « W » or « M », but with our indicator we will drive our trading using specific strategy based on price behavior and support/resistance with trend smart detection by synchronizing renko chart with data from candlestick using SQ technology. Advantages Trading based only on price behavior and movement and No-Time Concerned. Easy to use & high performance& accuracy to expect trend direction. Over confidence to keep your trade open for long terms or exit or exit early Power Signal Can make from 10 to1000 pips from 1 position Large wick-to-brick ratio illustrates strong indecision / possible reversal Small wick-to-brick ratio illustrates little to no indecision / less likelihood of reversal Congestion areas can be analyzed more efficiently with the true price. A wick endpoint can be utilized to determine an adaptive / dynamic trail more easily A wick endpoint can be utilized to determine Support / Resistance areas more easily Shows you a pair condition if the bearish/bullish as a percentage, ex: UP33% or 67% Down. Gives a signal to engage in Buy or Sell and exit point. Work with most currency pairs, Gold, Oil, CFDs, Stocks, Share &Index. Very profitable when used during release of high volatility news and economic crises. What’s New in Version 2.2 Replaced the Old Cascade Stars Indicator with Stars Sequencer. Optimized Aggressive Trading Strategy by Adding New Histogram Oscillator. indication SELL signals. indicationBUYsignal Moving averages indication for BUY Moving averages indication for Sell Red Cascading stars Blue Cascading stars Condition To Buy for Aggressive Entry Condition of Sell For Aggressive Entry Multimeter :This index measures the percentage of control and resistance in the market, where giving a percentage indicating the direction of the trend since the opening, and it gives you an idea about market is bearish or bullish . CHANGES in Renko CHASE V2.1 RenkoChaseHisto : No Repaint indicator is one of best indicator Depends on accurate algorithm developed by CIT Investing developers that detect trend direction on renko chart NEW! Created by CIT Developers: Implemented V2.1 on 03/31/2015 Renko Chase Algorithm: give notification when as Yellow Histogram to indicate Entry/Exit for Conservative trading, fixed signal with No-Redraw of Effacement. NEW! Renko Chase Algorithm, Implemented on 31/03/2015 on Version 2.1 RenkoChaseSignal: This indicator will show you a yellow star on chart with cascading stars to indicate high accuracy market entry or exit for conservative trading, fixed with no effacement you can trade without cascading stars. Oscillator: indicator histogram used in Aggressive trading mode, fast etrend detection for early entry, trend Green for up or Red for down. Through update Renko chase v2.2 we have replaced the “cascade stars” indicator due of instability with a new indicator “ stars sequencer” with the same basics, the indicator will be look as series of Red/Green of stars that give trend direction based on support and resistance computing , equipped with an smart anti-aliasing filters that improve the misidentification of a trend direction, this indicator is more stable indicator with brokers that assure low slippage, also the fixed spread is better but it optional with tight spread . Renko Chase Trading System v2.2: Renko Chart Conservative Trading Mode The conservative trading mode consist to take view on all indicators that appear on chart above, be sure that the emergence of the signals is not at same time, as the system is built based on careful strategy to avoid going on potential weak signals, the appearance of the signals will be done on specific orders: MA Intersection, Arrow and Cascade stars appear first almost in small interval time lapse, Then the Histogram and the last is the Yellow star that is the most important to careful conservative trading, some traders maybe decide to get early entry so for that we recommend to use Aggressive Mode that give almost instant signal on next candle basics .